Resolution _________________

A RESOLUTION relating to the City Light Department; stating the intent of the Seattle City Council to review City Light's rate structure and examine the possibility of developing a rate design that merges residential and general service classes for City Light customers within the City of Seattle.

WHEREAS, Washington State has the most regressive tax system in the country, meaning poor and low-wage residents pay a significantly higher portion of their income in taxes than wealthy residents; and

WHEREAS, nationwide, poor and working people in the United States pay more in taxes than they receive in services; and

WHEREAS, in 2013 Seattle apartment rents rose higher than anywhere in the nation; and

WHEREAS, in Seattle is becoming an increasingly unaffordable city for poor and working people; and

WHEREAS, on average, around the world and throughout history, working people already face substantial economic hardship because they are paid less in wages than the value of their work; and

WHEREAS, the 2015-2020 strategic plan of Seattle Public Utilities also projects significant rate increases each of the next 6 years; and

WHEREAS, the cost allocation model the City of Seattle uses to design electricity rates across classes leads to residential Seattle City Light customers being charged significantly more for electricity on average than high capacity customers; and

WHEREAS, in 2013 the average energy cost for residential customers was $0.0841 per kWh while the average energy cost for high capacity customers was $0.0547 per kWh; and

WHEREAS, combining Seattle City Light customers into a single rate class would even the average rates, and would reduce the energy rates for residential customers; NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THAT:

Section 1. During the first quarter of 2015, the Seattle City Council intends to review Seattle City Light's customer class design and cost allocation among those classes with a view to lowering the costs to Seattle City Light's non-business customers beginning in 2016. The review will include consideration of merging the residential and general service classes for all customers within the City of Seattle.

Adopted by the City Council the ____ day of ____________________, 2014, and signed by me in open session in authentication of its adoption this________ day

of ______________________, 2014.

_________________________________

President ___________of the City Council

Filed by me this ____ day of ________________________, 2014.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Kshama Sawant LEG Resolution to re-examine Cost Allocation at City Light RES September 16, 2014 Version #1